What is full-time equivalent in SAP PA-PM - Budget Management?

SAP Term: full-time equivalent

• Component: PA-PM

• Component Name: Budget Management

• Description: A unit of measurement for the budgets of budget structure elements. One full-time equivalent FTE represents the funding required for one full-time employee.

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• Key Concepts: 
  Full-time equivalent (FTE) is a unit of measure used to quantify the amount of work done by an employee or group of employees. It is calculated by dividing the total number of hours worked by the number of hours that would be worked in a full-time job. For example, if an employee works 40 hours per week, their FTE would be 1.0. 
  
  How to use it: 
  In SAP's PA-PM Budget Management component, FTEs are used to measure the amount of work done by an employee or group of employees. This information can be used to calculate the cost of labor for a project or to compare the amount of work done by different employees. Additionally, FTEs can be used to track the progress of a project and ensure that it is completed on time and within budget. 
  
  Tips & Tricks: 
  When calculating FTEs, it is important to take into account any overtime hours worked by an employee or group of employees. Additionally, it is important to consider any unpaid leave taken by an employee when calculating their FTE. 
  
  Related Information: 
  For more information about SAP's PA-PM Budget Management component, please visit the SAP website at https://www.sap.com/products/pa-pm-budget-management.html. Additionally, you can find more information about calculating FTEs on the U.S. Department of Labor website at https://www.dol.gov/general/topic/workhours/fte.